The Concept and Implementation of Blockchain Technology

Currently, more and more entrepreneurs, businesses, and companies are seeing blockchain technology as far more than just the notion of cryptocurrency. It is becoming apparent that blockchain implementation is an enhanced means for developing corporate services, business promotion, and success.

The history of blockchain goes back to 2008, when it was conceptualized and presented by Satoshi Nakamoto. Formerly, blockchain technology had been proposed as a core component and working principle for Bitcoin. With the rapid development of technology today, we are witnessing the benefits of blockchain technology and smart-contract implementation.

What Is Blockchain Technology?

To put it simply, blockchain is a new and decentralized way to offer a digital, distributed database independent of central authority. It is also referred to as a distributed ledger, which stores and records all types of data in numerous blocks connected in one block structure.

Blockchain characteristics include:

transparency (all users can access the necessary data)

immutability/irreversibility (records cannot be changed)

high security (all personal data is highly protected)

cost efficiency

decentralization

ease of use (finds its use in various industries)

Blockchain technology is widely used nowadays, as it solves a range of issues in the organizational processes of all industries. Once data is entered into a block, it is almost impossible to change, as such actions require the approval of all members involved in the system. Its decentralized nature attracts users, as there are no governmental control or restrictions. Still, all participants can be sure of security and the protection of their personal rights. Blockchain unites entrepreneurs, companies, entities, and other participants by allowing them to share data quickly, securely, and from any part of the world.

Smart contracts are another significant part of the blockchain world. A smart contract is a tool for ensuring blockchain working principles. It is a cryptographically-encrypted set of codes running on blockchain that controls cryptocurrency transfers between parties and ensures that all conditions are met. A single user can create a code, which is automatically executed on any blockchain platform (Ethereum, NXT, Bitcoin, Chain, etc.). Such execution is possible only when two parties comply with the requirements; thus, third-party involvement is not needed. Smart contracts guarantee speed, safety (as all rights and funds are protected), and a high level of reliability (as cheating is impossible).

Blockchain Implementation in Various Industries

One of the pros of blockchain implementation is that it can be applied to any type of data. There are numerous ways to deploy smart contracts to satisfy any type of need.
For this reason, many industries are applying blockchain technology to enhance the quality of their business offerings, whether they deal with a product or service, or provide some kind of support.

The first field to apply blockchain technology was cryptocurrency. As the trend of investing in crypto became popular, it required a decentralized way of conducting transactions between parties as well as an opportunity to exchange or trade these cryptocurrencies. Thus, when investors started purchasing coins and tokens, they used various blockchain platforms to enable fast, secure transactions.

Due to the emergence of ICO projects and their launches, investment in coins became less popular. The reason for this is that ICOs also provide an opportunity for token purchase at a gradually increasing value. In addition, they tend to offer some kind of product or service that is valuable, useful, and provides solutions to relevant issues in the community.

This high number of beneficial features proves how much blockchain technology can contribute to any sphere with regard to efficient workflow and productivity. With blockchain, one doesn’t have to look for complicated means of business management. As long as there is a necessity to streamline, organize, and find cost-efficient business solutions, blockchain is the best choice. Discover more examples of how to invest in blockchain technology.

How To Implement Blockchain Technology: Main Aspects

While blockchain can be considered complex at the beginning of its implementation due to its novelty, one should keep in mind that it will definitely pay off later. Before beginning, a company should thoroughly think through its business strategy to make sure blockchain is a match and the right solution. As long as a company has to deal with data storage, transaction processing, and the provision of transparent, shared information for users, it should consider the step of BC technology implementation.

According to Jeff Garzik, Bloq co-founder, there exist four main stages of blockchain implementation.

Stage 1

Identify the use case, and scope out a technological development plan.

Therefore, in the first stage, it’s important to ensure that the company’s service or product really needs blockchain implementation, with the help of which customers will gain value as a final outcome. Additionally, the company must have reasonable issues or problems that blockchain technology will solve. Only in this case will implementation be successful.

Stage 2

Proof of Concept (PoC). A PoC plan addresses how the company’s product or service supports development goals. This plan should include precise success criteria, documentation stating how the PoC is going to be carried out, an evaluation aspect, and outlined suggestions for provided solutions. The PoC plan is an integral aspect that determines product/service delivery to the global market.

Stage 3

Organize a field trial, and run limited tryouts with customer feedback. The next step of BC implementation is running tryouts. This phase is crucial, as well, because it determines whether the strategy has been technically well-developed. In case of problems, the company must take improvement measures, eliminating potential risks and mistakes to ensure product/service quality. Customer feedback is much valued, as the client’s opinion is important and their suggestions should be taken into consideration.

Stage 4

Roll out the product for community use. This is the final stage. As soon as all strategic moves have been evaluated and all risks eliminated, the company is ready to roll out the final version of the product or service.

There are several ways to technically implement blockchain technology. Let’s consider some of them:

Blockchain Implementation: Java Code

Immutability

How is it provided?

The SHA-256 hash, computed for transaction processes, proves BC immutability; the content of a certain block is hashed, providing unique identifiers. These hashes are stored from previous blocks and hashed into the next block header, making it impossible to tamper with. Below is a Java example of the properties of a block:

Block Hash

As mentioned above, a block hash can be computed by each block, within which transactions can be serialized to JSON.

Chain

Blocks are managed by accepting transactions; thus, a block can be created when a preset threshold has been reached. Below is an example of a simple blockchain:

To create a new block, assign the hash and seed the right value. This method is offered for use:

After creating new blocks and hashes, it’s important to understand proof-of-work (PoW). The problem-solving number must be complicated, yet easy to verify. Then, basic PoW should be implemented.

Adding Transactions

Transactions should be added, too. They can either represent the execution code (smart contract) or store certain transaction information. These transactions are processed outside blocks or chains; they get into the network, and are combined together. At this stage, consensus algorithms should be used, usually to avoid the risk of double-spending.

Creating a Merkle Tree

After adding transactions to a block, it is important to create a Merkle Tree data structure for storing the Merkle Tree root, which validates transactions:

Testing

Finally, everything has to go through final JUnit tests.

Blockchain Implementation: Python

Python is another blockchain implementation programming language. To put it simply, Python can be described in seven main functions.

1. Hash function: used to avoid tampering and manipulations.

2. State: should be defined to clarify the owner’s parameters.

3. Creating the block structure: adding blocks to the chain.

4. Checking the hash of the previous block.

5. Checking block validity.

6. Chain verification.

7. Adding transaction functions.

Java code is usually used in NEM and Python – in Graphene. When comparing Java and Python, it should be stated that they are both powerful languages in computer programming, and there are many similarities between them, as well. When it comes to certain nuances, however, one should consider Java as an option when dealing with a browser, and Python as an option when dealing with scientific processes/analysis.

Java’s main advantages are independence from the platform, secure running in selected environments, and the fact that it is widespread. Disadvantages include slow performance and costly memory management.

Python has the following advantages and disadvantages:

The Cost Of Blockchain Implementation

What is the cost of implementing blockchain? This question is complex, as it depends upon what, exactly, the company wants to do — and where, exactly, blockchain technology needs to be applied. Generally, blockchain setup is free of cost, and there are numerous open-source blockchain platforms that can be used. If someone wants to use blockchain for data storage, he or she can fork the blockchain platform online. This is easy, especially if you are a developer.

When it comes to the type of project in which blockchain should be implemented, there are additional services that should be considered, and this can cost a certain amount of money. Let’s research some approximate prices for such services.

The estimated cost is dependent upon the type of project. As blockchain technology requires smart-contract development and execution, a company must consult and cooperate with smart-contract development agencies. The cost of SC execution varies from approximately $3,000 to $10,000. SC is a significant part of blockchain technology, and should be paid a great deal of attention. As SCs are immutable and can only be deployed once, the code has to be well-written and hack-resistant without any vulnerable spots. Therefore, the price is reasonable.

If the company needs decentralized applications development (DApps), it should consider that the price of one starts at approximately $1000.

Launching an ICO project is a whole other story, as this process requires not only BC implementation, but also:

It can be seen that an ICO launch requires many skills and the effort of a range of professionals plus a whole team of developers, consultants, and workers in various spheres. This is why the cost of ICO solutions can vary from as low as $50K to $350K, and all the way up to $1M. The price depends upon the amount of services provided in addition to their quality and complexity. Blockchain-agency popularity and brands are also decisive factors when defining an ICO launch price. Find out more details about how much it costs to launch an ICO. Sound pricey? Don’t forget that successful ICOs raise from $10M up to $200-300M in investments, therefore, investing in the quality of your campaign seems worthy.

Applicature is a blockchain agency that supports and guides ICO projects while also providing marketing and smart-contract development services. Let’s find out more about Applicature’s experience in the blockchain industry, along with blockchain implementation examples and use cases.

Applicature’s Experience in Blockchain Implementation

Applicature is a boutique blockchain agency working with blockchain-based and cryptocurrency projects. Applicature reviews and adjusts a company’s business model to the blockchain ecosystem, providing all necessary help, guidance, and assistance. Additionally, Applicature is about to launch a new offer: “blockchain as a service,” which provides consultations and support not only to startups, but also to blockchain-based accelerators conducting the new vesting escrow model. This ensures a higher level of investor safety as well as stimulation of startup development, in line with the new delegated DAICO approach.

Applicature has vast experience in providing blockchain development services, including:

Applicature’s Blockchain Use Cases

This is a blockchain-based game, with the help of which one can earn a Bitcoin reward after collecting a certain number of Satoshi.

Cryptofights’ founders decided to use the new ERC721 token standard to offer new opportunities and solutions in their business case, as these tokens are not fungible.

Applicature assisted in the development of the ERC721 technical concept and its implementation within the company’s network. As a result, Cryptofights is a very popular blockchain game widely played in the community.

This is an infrastructure platform and e-sports and gaming payment gateway. The Applicature team assisted DreamTeam with its blockchain implementation and BC conceptual design.

Blockchain technology is applied to the platform with the help of smart-contract execution, according to which transactions can be processed when the arranged conditions are met. Additionally, BC allows tracking of gaming results and enables the verification system in three steps: API correlation with the match/team ID; Oracle network results confirmation; results confirmation via specialized networks.

As a result, DreamTeam can guarantee the accuracy of player/team payments of preset sums while fulfilling obligations to tournament sponsors/organizers.

The Howdoo network is leveraged on the Ethereum blockchain, which is used to store the company’s groups and their metadata. A distinctive Howdoo feature is that it’s not a history of messages that will be kept on blockchain, but IPFS links. This will enable Howdoo applications to fetch relevant file data from relevant nodes of storage.

Auxilium is an altruistic cryptocurrency project. It is interested in conservation issues along with renewable resources and helping other people, companies, and institutions.

Applicature assisted Auxilium in the rebuilding of their platform. An Ethereum fork was developed, and Applicature Ethereum proof-of-stake was shifted to allow simple user participation in the process of transaction validation. The Auxilium wallet was customized and enhanced, as well.

Auxilium smart contracts are now used to control and support projects solving social issues worldwide.

This is a new-generation educational platform offering a new approach to the technical education in EdTech, FinTech, and BankTech spheres.

Applicature helped the Developeo team with smart-contract execution to ensure a high level of security. SC included an ERC20 token sale and team vesting solutions, along with SC features like a lockup period, wallet/address validation, unused token utilization, and the ability to return funds in ETH or USD.

This company issues tokenized assets: ERC20 tokens, for instance, which represent digital asset ownership. Orocrypt offers a safe method of digitizing gold, which can be converted on demand and implemented into a platform.

To launch the platform, Applicature came up with a concept that allows one to buy an Orocrypt token. The company purchases gold for the user, which is later stored in the best banks. According to this system, one would have:

a unique login

client verification

the ability to request a buy order

internal wallets

balances

the ability to compose/withdraw funds

VARcrypt

This is a blockchain-based content distribution platform designed for:

virtual reality

augmented reality

legacy content

Applicature helped set up the ICO cabinet and the contribution dashboard. Fully fledged, the platform has been successfully deployed with KYC policy implementation.

Blockchain implementation allows VARcrypt to combine AR, VR, and legacy content together in a decentralized, secure way so that artists and content creators can benefit.

This is a crypto exchange in the development stage. Coinspark shares 25% of its profits with the token-holders, and pays out dividends quarterly.

Applicature assisted Coinspark by organizing the contribution flow and applying KYC policy. An ICO cabinet with such features as two-factor authentication, verification, whitelisting, history, and communication has been applied.

Blockchain implementation allows Coinspark protocol to be scalable and useful. Any Coinspark asset can be transparently tracked, received, and recognized due to asset independence and discoverability.

FLiK offers a one-of-a-kind, end-to-end entertainment ecosystem that allows projects to receive funds, get filmed, be distributed, and be paid for within the FLiK framework. FLiK represents a breakthrough approach to cinematic development and promotion in the modern community.

This is a liberated investor ecosystem that offers flexible solutions and freedom through enhanced technology. Every member has the right to vote and influence in decision-making about the investment of funds.

Applicature helped CrowdWiz with white-paper writing, polishing up their token supply, and determining price and allocation to reflect the company’s best features.

This is a blockchain-based platform designed to promote crypto-community growth. CLOUT provides users with quality information/data about the growing development space. The CLOUT platform consists of a social media interface with utilized user-generated content.

Applicature received a request for platform hosting of a family of two tokens. Research was carried out, and, as a result, a potential risk of having the ERC223 standard implemented with the ERC20 was discovered. The risk was that these tokens do not work with other Ethereum token standards. What’s more, ERC20 may not have been tradable on the menu of exchanges. Applicature team experts worked on this issue and found solutions to implement it successfully.

This is an application that provides blockchain solutions for the cannabis industry globally.

Applicature helped Budbo with token-economics implementation, and gave suggestions that the token supply details match industry demands and requirements.

Blockchain implementation within this project allows delivery of a working modular code and a sandbox environment. This minimizes development time, enhances infrastructure, and increases investment opportunities.

This is an all-in-one, blockchain-based platform working in the sphere of logistics. The platform allows users to keep trucking and use the tamper-free decentralized network (DApp) for secure, immutable data storage. With BC implementation, EZlogz allows the use of a social media platform for communication, and provides an application for easier use, a trip planner, an easy-to-use map with pinpoint locations, and the ability to safely store and share relevant data.

Applicature helped EZlogz advance their blockchain technology and provide performance solutions for immutable data storage. The approach of deploying light blockchain nodes onto mobile devices connected to ELD was applied. Smart contracts were developed with specific company needs in mind, providing secure access to all types of data.

This is a crowdfunding platform for everyone. Blockchain application enables this platform to help founders/startups find and access funding options. The distinctive features BC provides are: transparency, accessibility, and a great chance of success.

Applicature assisted Acorn Collective with smart-contract deployment. The code was reviewed for potential vulnerabilities. According to JavaScript requirements, contract behavior was recreated to correlate with the business model. ERC20 token economics and security issues were also reviewed.

To conclude, it should be noted that blockchain technology implementation significantly increases the chances of success for any startup or company. With a wide range of applications and numerous advantageous features, blockchain can be applied in any sphere. If your project idea or company business model needs certain enhancements in development or workflow processes, don’t hesitate to consider BC implementation! If any questions arise, please contact the Applicature team.